PPI Claims – Are You Eligible To Claim?
Chances are you have heard a lot about payment protection insurance (PPI) in the news lately. PPI is an insurance policy that is taken out to protect your payments in the event that you cannot work. PPI plans are generally bought at the same time as a mortgage, credit card or personal loan, and cover you in the event of an illness, injury or redundancy that prevents you from working. In the event that you cannot work, the plan will cover your minimum monthly payments until you start work again, or up to 12 months from the starting coverage date.
Controversy
The problem with PPI policies is that a lot of them have been mis-sold to borrowers. There have been some cases where the borrower was not informed that the insurance was an optional add-on. There were even some people who were told that they would not qualify for funding unless they agreed to the expensive insurance policy. There were also other borrowers who were never even informed that they were being charged for PPI in the first place. In all of these instances, people were mis-sold the plans and are eligible to claim back the payments that were made towards the insurance plan.
Are You Eligible?
There are a few steps to take to find out if you are eligible to make a PPI claim, and what you need to do in order to be compensated. These include:
1. Look at your original agreement. Was it taken out in the last six months? Were you informed that the PPI was optional? If you answered yes, you might be eligible to claim back your payments.
2. Once you have decided that you have a case, you’ll need to write directly to the person who sold you the insurance such as the banker, credit provider or loan officer. There’s a very good chance your claim will be rejected, in which case you will then need to make a formal complaint with the Financial Ombudsman Service.
3. If you would prefer not to go through all these steps on your own, you can employ a claims company to act on your behalf. Claims companies employ skilled professionals who know the ins and outs of PPI policy claims. You will have to pay them for this service, which is generally a small percentage of the money claimed back.
Finding New PPI
Once you have your payments back from the mis-sold PPI policy, you may still want to insure your loan or credit card. The good news is that there are many different insurance companies around that offer competitive rates on PPI. Look for a company that did not supply your mortgage, loan or credit card, as they will typically charge you much more than an independent third party. Don’t forget to shop around and compare, and read the fine print before signing up for a new insurance policy.
Sarah Garrod is a debt consultant who is currently researching about PPI claims advisory.
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